The Demand Letter to Contractor is a critical document in the UAE business landscape, particularly in construction and development projects. It serves as a formal notice of claim against contractors who have failed to meet their contractual obligations, whether through non-performance, delays, defective work, or payment issues. The document must comply with UAE Civil Code requirements and local commercial practices, making it admissible in UAE courts if legal action becomes necessary. Typically used when informal resolution attempts have failed, the Demand Letter to Contractor represents an escalation in the dispute resolution process while potentially serving as a final opportunity for the contractor to remedy the situation before legal proceedings commence. The document should be carefully drafted to include all relevant details, supporting evidence, and clear demands while maintaining professional tone and compliance with UAE legal requirements.

1. Sender's Details: Full legal name, address, and contact information of the demanding party

2. Recipient's Details: Full legal name, address of the contractor, including their trade license number if applicable

3. Date: Current date of the letter in clear format

4. Reference Line: Project name, contract reference number, and any other relevant identifying information

5. Subject Line: Clear indication that this is a formal demand letter

6. Contract Details: Brief description of the underlying contract, including date and key terms relevant to the demand

7. Description of Default/Issue: Clear statement of the contractor's breach or default, with specific details and dates

8. Monetary Demand: Precise amount being demanded, including any applicable interest or penalties

9. Legal Basis: Reference to relevant contract clauses and/or applicable UAE laws supporting the demand

10. Payment Terms: Clear payment deadline and acceptable payment methods

11. Consequences of Non-Payment: Statement of legal actions that will be taken if demand is not met

12. Closing: Formal closing with signature block and title of authorized signatory